Rite Aid Essay

1044 WordsApr 1, 20125 Pages
Rite Aid Corporation (Case 22) The following is a general environmental analysis of the Rite Aid the business sector of the retail pharmacy industry, with an analysis of Rite Aid. The first section of this report will cover an overview of the trends in technology demographics, economics, political/legal, and social/cultural-global. The second section of this report will cover porter’s five forces, Competitive analysis, internal analysis and alternative strategies. Technology: Smartphones has made our life easier. We can use internet wherever we are. For the growing ranks of on-the-go shoppers who carry mobile smartphones, Rite Aid has launched an official mobile app offering one-click prescription refill scanning, locations and…show more content…
The stock price started dropping and also Rite Aid was in billions of dollars in debt and hundreds of underperforming stores. Rite Aid faces the ongoing challenges of rising health care expenses for its employees, contract raises, and payroll, as wells as the current and building challenges of a slow economy. Porter’s five points. * Competitive rivalry (high) The competitive rivalry is moderate to high. The major competition is faced from other drugstore retailor that provides similar services. The two major competitors are Walgreen and CVS. These both companies has rapidly expended into this market. The both have more than 14,000 retail locations nationwide. Individually, the two companies have a market capitalization that Rite Aid four times over. * Barrier of Entry (medium) Barrier of Entry power is medium. The primary reasons are because of the issues with regulation, capital requirements, and economies of scale. To open up a new drug store will cost high amount of money and it also depend the type of locations. * Substitute (medium) Substitute power medium. Major substitute is mail-order. Internet has make everyone life easier and people order there medications online and mail-order companies medications can be bought at low cost. * Power of supplier (moderate) Supplier power is moderate. In pharmacy industry there are
Open Document